HOUSTON, Nov. 16, 2020 /PRNewswire/ -- Flotek
Industries, Inc. ("Flotek" or the "Company") (NYSE: FTK) today
announced results for the third quarter ended September 30, 2020.
"It has been a challenging period as we continue to navigate
through this global market disruption as a result of the health
crisis and demand destruction due to the oversupply of crude oil.
While our third quarter performance showed some positive signals,
we continued to face some headwinds in the business, and our
results did not meet our expectations," said John W. Gibson, Jr., Chairman, President, and
Chief Executive Officer. "Flotek is making the investments in the
business today to create a strong foundation for 2021 and beyond.
We executed a number of important initiatives in the quarter that,
while difficult, are critical to the long-term success of the
business. To support our long-term vision, we have diversified our
business while building three strong business lines centered around
creating value from chemistry. Through the acquisition of JP3, we
have access to the 'full stream' across the hydrocarbon value
chain, which positions the Company to benefit from the digital
transformation of chemistry. Moreover, we have introduced a
janitorial and sanitizing solutions product line that leverages our
existing infrastructure and core competencies. Additionally, we see
significant international growth opportunities across our business
segments, which is an integral part of our long-term strategy to
drive greater returns."
Third Quarter Financial Results
Effective April 1, 2020, Flotek's
Energy Chemistry Technologies segment has been renamed the
Chemistry Technologies segment and also includes the Company's
recently launched sanitizer and disinfectant operations. Flotek's
second segment, Data Analytics, was created in conjunction with the
acquisition of JP3 Measurement, LLC ("JP3") on May 18, 2020. Third quarter results for the Data
Analytics segment include the first full quarter of JP3
results.
- Consolidated Revenues: Flotek generated third
quarter 2020 consolidated revenue of $12.7
million for the third quarter, up 43.5% from $8.9 million in the second quarter, and below the
$21.9 million in the third quarter
2019. The sequential improvement was primarily driven by an uptick
in energy chemistry activity as demand increased in domestic and
international markets. The year-over-year decline in revenue
reflects continued volatility in the macro-environment for U.S.
onshore drilling and completion activity, further impacted by
global economic events, as well as concerns related to COVID-19
pressuring productivity and customer demand across the oil and gas
market.
- Loss from Continuing Operations: The Company
reported a loss from continuing operations for the third quarter
2020 of $45.2 million, or a loss of
$0.66 per diluted share, compared to
a loss from continuing operations in the third quarter 2019 of
$11.2 million, or a loss of
$0.19 per diluted share. The
loss from continuing operations includes unusual, one-time charges
related to inventory, finite-lived intangible assets, goodwill, and
an earnout payment related to the acquisition of JP3, totaling
$0.55 per diluted share, discussed
below.
-
- Impairment Charges: As a result of the extended impact
of COVID-19 and the subsequent decline in oil and gas
demand in the third quarter, Flotek recorded a goodwill
impairment charge of $11.7 million
and finite-lived intangible assets impairment charge of
$12.5 million in the Data Analytics
segment.
- Inventory Write-downs: As a result of the Company's
product rationalization efforts where it evaluated historical
inventory and reduced its product portfolio, Flotek recorded
provisions for excess and obsolete inventory (E&O) of
$9.6 million during the third
quarter, including $5.7 million for
Chemistry Technologies and $3.9
million for Data Analytics.
- Earn-out Provisions: As a part of the Company's
purchase agreement with JP3 and the related earn-out terms related
to Flotek share price performance, the Company recorded an expense
of $3.2 million.
- Consolidated Operating Expenses: Consolidated
operating expenses (excluding depreciation and amortization) were
$29.5 million in the third quarter
2020, which included unusual, one-time expenses related to
inventory of $9.7 million and the JP3
acquisition of $3.2 million, which
contributed to an 24.7% increase from $23.6
million in the same period last year.
- Corporate, General, & Administrative Expenses:
Corporate general and administrative expenses for the third quarter
of 2020 were $2.7 million compared to
$5.7 million for the third quarter of
2019.
- Adjusted EBITDA: Adjusted EBITDA for the third
quarter 2020 was a loss of $6.5
million, which narrowed from the loss of $8.0 million during the third quarter of 2019,
driven by headcount and expense reductions in freight, equipment
rentals, and travel & entertainment.
Balance Sheet and Liquidity
As of September 30, 2020, the
Company had cash and equivalents of $49.1
million. As previously disclosed on April 16, 2020, the Company received a
$4.8 million loan and JP3 received a
$0.9 million loan, both pursuant to
the Paycheck Protection Program administered by the U.S. Small
Business Administration as part of the Coronavirus Aid, Relief, and
Economic Security Act, known as the "CARES" Act.
In response to the pandemic and the volatile oil and gas market
environment, earlier this year, the Company has taken numerous
actions to increase its financial flexibility and preserve
liquidity, including reducing headcount, decreasing cash
compensation for executive officers and the Board of Directors, and
cutting back discretionary spending. In the third quarter, the
Company continued its cost reduction efforts, including negotiation
of key supplier, logistics and lease contracts, as well as
reductions in operating expenses in its Data Analytics segment.
Chemistry Technologies Segment
In the third quarter, the Chemistry Technologies segment
improved sequentially with a 52% increase in revenue driven by an
uptick in energy chemistry activity as demand picked up in domestic
and international markets. Furthermore, the Company rationalized
its inventory, streamlining its product portfolio by 35% and
consequently, Flotek recorded a write-down related to E&O
inventory, as previously discussed.
Within its sanitizer and disinfectant operations, Flotek
continues to actively sell FDA and EPA-registered products across
multiple end-markets, including selling on Amazon. During the third
quarter, the Company expanded its offering to include disinfectant
and surface cleaners in its existing sanitizer line to establish a
full-product offering for the janitorial and sanitizing (JanSan)
community, particularly those in commercial and industrial
applications.
Following a strong second quarter of growth, Flotek experienced
pricing pressure in its sanitizer business in the third quarter, as
suppliers with lower quality products offered steep discounts to
liquidate inventory ahead of the anticipated tightening of
regulatory standards. Flotek expects this disruption to be
temporary with excess, low-quality inventory beginning to dissipate
from the market.
Data Analytics Segment
As previously announced, in May, Flotek acquired 100% ownership
of JP3, an equipment and data company that automates real-time data
and analytics to the energy industry to maximize the value of their
hydrocarbons. Third quarter results for the Data Analytics segment
include the first full quarter of JP3 results.
During the quarter, results for Data Analytics were impacted by
reductions in capital budgets by midstream and downstream
customers, following the extended impact of COVID-19. As a result
of these conditions and the planned transitions to a recurring
revenue business model, the Company conducted an impairment
analysis which resulted in goodwill and finite-lived intangible
assets impairment charges for JP3 in the third quarter, as
previously referenced.
During the quarter, the Company focused on reducing operating
expenses, implementing a headcount reduction of 35% within the
segment, as well as decreasing other operational costs not directly
tied to near-term revenue generation.
As a part of the Company's inventory rationalization study,
Flotek identified write-downs related to E&O inventory for the
segment, as previously referenced. Additionally, during the
quarter, the Company completed its inventory review for JP3
following the acquisition and identified $2.3 million in measurement period
adjustments.
Looking forward, the Company is actively focusing on key growth
opportunities to transform the business, including:
- International market entry, with a focus on the Middle East, Africa and Asia, bolstered by a newly hired Middle East-based business development
leader.
- Transition from a traditional equipment-based sales model to a
recurring, subscription-based model.
- Leveraging the collaborative agreement with Phillips 66 to
deploy JP3 technology to reduce transmix and deliver cost savings,
expand market adoption among refine fuel producers, transporters
and distribution terminal operations.
Board of Directors and Executive Management Updates
- Flotek recently announced the appointment of Michael Fucci to its Board of Directors. Mr.
Fucci was the Former Chairman of Deloitte U.S. LLP and is a thought
leader on human capital, diversity & inclusion and business
transformation. He brings a strong track record of financial
and operational expertise to the board. Mr. Fucci's announcement
expands Flotek's board to a total of eight directors.
- TengBeng Koid, President of Global Business, has expanded his
role with the Company to lead the Data Analytics segment.
Conference Call Details
Flotek will host a conference call on Tuesday, November 17, 2020 at 11:00 am CST (12:00 p.m.
EST) to discuss its third quarter operating results ended
September 30, 2020. To participate in
the call, participants should dial 844-835-9986 approximately five
minutes prior to the start of the call. The call can also be
accessed from Flotek's website at www.flotekind.com.
About Flotek Industries, Inc.
Flotek Industries, Inc. is a technology-driven, specialty
chemistry and data company that serves customers across industrial,
commercial and consumer markets. Flotek's Chemistry Technologies
segment develops, manufactures, packages, distributes, delivers,
and markets high-quality sanitizers and disinfectants for
commercial, governmental and personal consumer use. Additionally,
Flotek empowers the energy industry to maximize the value of their
hydrocarbon streams and improve return on invested capital through
its real-time data platforms and chemistry technologies. Flotek
serves downstream, midstream and upstream customers, both domestic
and international. Flotek is a publicly traded company
headquartered in Houston, Texas,
and its common shares are traded on the New York Stock Exchange
under the ticker symbol "FTK." For additional information, please
visit Flotek's web site at www.flotekind.com.
Forward-Looking Statements
Certain statements set forth in this press release constitute
forward-looking statements (within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934) regarding Flotek Industries, Inc.'s business,
financial condition, results of operations and prospects. Words
such as will, continue, expects, anticipates, intends, plans,
believes, seeks, estimates and similar expressions or variations of
such words are intended to identify forward-looking statements, but
are not the exclusive means of identifying forward-looking
statements in this press release. Although forward-looking
statements in this press release reflect the good faith judgment of
management, such statements can only be based on facts and factors
currently known to management. Consequently, forward-looking
statements are inherently subject to risks and uncertainties, and
actual results and outcomes may differ materially from the results
and outcomes discussed in the forward-looking statements.
Further information about the risks and uncertainties that
may impact the Company are set forth in the Company's most recent
filing with the Securities and Exchange Commission on Form 10-K
(including, without limitation, in the "Risk Factors" section
thereof), and in the Company's other SEC filings and publicly
available documents. Readers are urged not to place undue
reliance on these forward-looking statements, which speak only as
of the date of this press release. The Company undertakes no
obligation to revise or update any forward-looking statements in
order to reflect any event or circumstance that may arise after the
date of this press release.
Flotek Industries,
Inc.
|
Unaudited
Condensed Consolidated Balance Sheets
|
(in thousands,
except share data)
|
|
|
|
|
|
September 30,
2020
|
|
December 31,
2019
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
49,193
|
|
$
100,575
|
Restricted
cash
|
664
|
|
663
|
Accounts receivable,
net of allowance for doubtful accounts of $1,150
|
|
|
|
and $1,527 at
September 30, 2020 and December 31, 2019, respectively
|
10,629
|
|
15,638
|
Inventories,
net
|
14,370
|
|
23,210
|
Income taxes
receivable
|
754
|
|
631
|
Other current
assets
|
3,427
|
|
13,191
|
Total current
assets
|
79,037
|
|
153,908
|
Property and
equipment, net
|
8,694
|
|
39,829
|
Operating lease
right-of-use assets
|
2,368
|
|
16,388
|
Goodwill
|
8,092
|
|
—
|
Deferred tax assets,
net
|
249
|
|
152
|
Other intangible
assets, net
|
-
|
|
20,323
|
Other long-term
assets
|
33
|
|
—
|
TOTAL
ASSETS
|
$
98,473
|
|
$
230,600
|
LIABILITIES AND
STOCKHOLDERS' & EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
6,201
|
|
$
16,231
|
Accrued
liabilities
|
13,084
|
|
24,552
|
Income taxes
payable
|
25
|
|
—
|
Interest
payable
|
22
|
|
—
|
Current portion of
long-term debt
|
3,462
|
|
—
|
Current portion of
operating lease liabilities
|
651
|
|
486
|
Current portion of
finance lease liabilities
|
58
|
|
55
|
Total current
liabilities
|
23,503
|
|
41,324
|
Long-term debt, less
current portion
|
2,201
|
|
—
|
Deferred revenue,
long-term
|
104
|
|
—
|
Long-term operating
lease liabilities
|
8,408
|
|
16,973
|
Long-term finance
lease liabilities
|
114
|
|
158
|
Deferred tax
liabilities, net
|
14
|
|
116
|
Total
liabilities
|
34,344
|
|
58,571
|
Stockholders'
Equity:
|
|
|
|
Preferred stock,
$0.0001 par value, 100,000 shares authorized; no shares
issued
|
|
|
|
and
outstanding
|
—
|
|
—
|
Common stock, $0.0001
par value, 140,000,000 shares authorized; 77,972,135
|
|
|
|
shares issued and
73,323,001 shares outstanding at September 30, 2020;
|
|
|
|
63,656,897
shares issued and 59,511,416 shares outstanding at
December 31, 2019
|
7
|
|
6
|
Additional paid-in
capital
|
358,726
|
|
347,564
|
Accumulated other
comprehensive income
|
11
|
|
181
|
Accumulated
deficit
|
(261,008)
|
|
(142,238)
|
Treasury stock, at
cost; 4,649,134 and 4,145,481 shares at September 30,
2020
|
|
|
|
and December 31,
2019 respectively
|
(33,607)
|
|
(33,484)
|
Total stockholders'
equity
|
64,129
|
|
172,029
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
98,473
|
|
$
230,600
|
|
|
|
|
(1) Results of the
Company's Consumer and Industrial Chemistry Technologies ("CICT")
segment are presented as discontinued operations for all
periods.
(2) Prior periods presented for 2019 have been adjusted to reflect
revisions to results determined not to be material to those prior
periods.
|
Flotek Industries,
Inc.
|
Unaudited
Condensed Consolidated Statements of Operations
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
30/09/2020
|
|
30/09/2019
|
|
30/06/2020
|
|
30/09/2020
|
|
30/09/2019
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
12,739
|
|
$
21,879
|
|
$
8,880
|
|
$
41,035
|
|
$
99,827
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
Operating expenses
(excluding depreciation and amortization)
|
29,466
|
|
23,622
|
|
11,632
|
|
63,939
|
|
105,711
|
Corporate general and
administrative
|
2,679
|
|
5,685
|
|
5,395
|
|
12,568
|
|
19,020
|
Depreciation and
amortization
|
518
|
|
2,058
|
|
468
|
|
3,177
|
|
6,437
|
Research and
development
|
1,480
|
|
2,297
|
|
1,638
|
|
5,673
|
|
6,658
|
(Gain) loss on
disposal of long-lived assets
|
(37)
|
|
3
|
|
(22)
|
|
(92)
|
|
1,096
|
Impairment of
goodwill
|
11,706
|
|
-
|
|
-
|
|
11,706
|
|
-
|
Impairment of fixed
and long-lived assets
|
12,521
|
|
-
|
|
-
|
|
69,975
|
|
-
|
Total costs and
expenses
|
58,333
|
|
33,665
|
|
19,111
|
|
166,946
|
|
138,922
|
Loss from
operations
|
(45,594)
|
|
(11,786)
|
|
(10,231)
|
|
(125,911)
|
|
(39,095)
|
Other (expense)
income:
|
|
|
|
|
|
|
|
|
|
Gain on Lease
Termination
|
-
|
|
-
|
|
576
|
|
576
|
|
-
|
Interest
expense
|
(19)
|
|
(1)
|
|
(16)
|
|
(40)
|
|
(2,014)
|
Other income,
net
|
291
|
|
436
|
|
78
|
|
322
|
|
1,238
|
Total other income
(expense), net
|
272
|
|
435
|
|
638
|
|
858
|
|
(776)
|
Loss before income
taxes
|
(45,322)
|
|
(11,351)
|
|
(9,593)
|
|
(125,053)
|
|
(39,871)
|
Income tax
benefit
|
81
|
|
191
|
|
32
|
|
6,282
|
|
694
|
Loss from
continuing operations
|
(45,241)
|
|
(11,160)
|
|
(9,561)
|
|
(118,771)
|
|
(39,177)
|
Income from
discontinued operations, net of tax
|
-
|
|
117
|
|
-
|
|
-
|
|
44,583
|
Net (loss)
income
|
(45,241)
|
|
(11,043)
|
|
(9,561)
|
|
(118,771)
|
|
5,406
|
Basic earnings
(loss) per common share:
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
(0.66)
|
|
$
(0.19)
|
|
$
(0.14)
|
|
$
(1.75)
|
|
$
(0.67)
|
Discontinued
operations, net of tax
|
-
|
|
-
|
|
-
|
|
-
|
|
0.76
|
Basic earnings (loss)
per common share
|
$
(0.66)
|
|
$
(0.19)
|
|
$
(0.14)
|
|
$
(1.75)
|
|
$
0.09
|
Diluted earnings
(loss) per common share:
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
(0.66)
|
|
$
(0.19)
|
|
$
(0.14)
|
|
$
(1.75)
|
|
$
(0.67)
|
Discontinued
operations, net of tax
|
-
|
|
-
|
|
-
|
|
-
|
|
0.76
|
Diluted earnings
(loss) per common share
|
$
(0.66)
|
|
$
(0.19)
|
|
$
(0.14)
|
|
$
(1.75)
|
|
$
0.09
|
Weighted average
common shares:
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares used in computing basic earnings (loss) per common
share
|
68,217
|
|
58,608
|
|
66,035
|
|
68,063
|
|
58,491
|
Weighted average
common shares used in computing diluted earnings (loss) per common
share
|
68,217
|
|
58,608
|
|
66,035
|
|
68,063
|
|
58,491
|
|
|
|
|
|
|
|
|
|
|
(1) Results of the
Company's Consumer and Industrial Chemistry Technologies ("CICT")
segment are presented as discontinued operations for all
periods.
(2) Prior periods presented for 2019 have been adjusted to
reflect revisions to results determined not to be material to those
prior periods.
|
FLOTEK INDUSTRIES,
INC.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
|
|
|
|
|
Nine months ended
September 30,
|
|
2020
|
|
2019
|
Cash flows from
operating activities:
|
|
|
|
Net (loss)
income
|
$
(118,771)
|
|
$
5,406
|
Less: Income from
discontinued operations, net of tax
|
—
|
|
44,583
|
Loss from
continuing operations
|
(118,771)
|
|
(39,177)
|
Adjustments to
reconcile loss from continuing operations to net cash (used in)
provided by operating activities:
|
|
|
|
Change in fair value
of contingent consideration
|
3,200
|
|
—
|
Depreciation and
amortization
|
3,177
|
|
6,437
|
Amortization of
deferred financing costs
|
—
|
|
1,428
|
Provision for
doubtful accounts
|
494
|
|
426
|
Provision for excess
and obsolete inventory
|
10,465
|
|
—
|
Impairment of
goodwill
|
11,706
|
|
—
|
Impairment of
right-of-use assets
|
7,434
|
|
—
|
Impairment of fixed
assets
|
30,178
|
|
—
|
Impairment of
intangible assets
|
32,363
|
|
—
|
Gain/(loss) on
disposal of long-lived assets
|
(668)
|
|
1,096
|
Non-cash lease
expense
|
299
|
|
813
|
Stock compensation
expense
|
2,208
|
|
2,829
|
Deferred income tax
provision
|
(199)
|
|
17,983
|
Reduction in tax
benefit related to share-awards
|
—
|
|
24
|
Changes in current
assets and liabilities:
|
|
|
|
Accounts receivable,
net
|
4,714
|
|
21,629
|
Inventories, net
|
3,186
|
|
3,000
|
Income taxes
receivable
|
(140)
|
|
2,853
|
Other current
assets
|
823
|
|
(4,036)
|
Other long-term
assets
|
(16)
|
|
3,286
|
Accounts payable
|
(11,906)
|
|
(4,434)
|
Accrued
liabilities
|
(17,689)
|
|
(14,205)
|
Income taxes
payable
|
25
|
|
595
|
Interest payable
|
22
|
|
(8)
|
Net cash provided (used in)
by operating activities
|
(39,095)
|
|
539
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(836)
|
|
(1,869)
|
Proceeds from sale of
business
|
9,907
|
|
155,498
|
Proceeds from sale of
assets
|
86
|
|
234
|
Purchase of JP3, net
of cash acquired
|
(26,284)
|
|
—
|
Purchase of patents
and other intangible assets
|
(8)
|
|
(590)
|
Net cash (used in) provided
by investing activities
|
(17,135)
|
|
153,273
|
Cash flows from
financing activities:
|
|
|
|
Borrowings on
revolving credit facility
|
—
|
|
42,984
|
Repayments on
revolving credit facility
|
—
|
|
(92,613)
|
Proceeds from
Paycheck Protection Program loan
|
4,788
|
|
—
|
Purchase of treasury
stock related to share-based awards
|
(123)
|
|
(207)
|
Proceeds from sale of
common stock
|
416
|
|
7
|
Payments for finance
leases
|
(152)
|
|
(51)
|
Net cash provided by (used
in) financing activities
|
4,929
|
|
(49,880)
|
Discontinued
operations:
|
|
|
|
Net cash used in operating
activities
|
—
|
|
(321)
|
Net cash provided by
investing activities
|
—
|
|
337
|
Net cash flows provided discontinued operations
|
—
|
|
16
|
Effect of changes in
exchange rates on cash and cash equivalents
|
(80)
|
|
2
|
Net (decrease)
increase in cash and cash equivalents and restricted
cash
|
(51,381)
|
|
103,950
|
Cash and cash
equivalents at beginning of period
|
100,575
|
|
3,044
|
Restricted cash at
beginning of period
|
$
663
|
|
$
—
|
Cash and cash
equivalents and restricted cash at beginning of
period
|
$
101,238
|
|
$
3,044
|
Cash and cash
equivalents at end of period
|
$
49,193
|
|
$
106,994
|
Restricted cash at
the end of period
|
$
664
|
|
$
663
|
Cash and cash
equivalents and restricted cash at end of period
|
$
49,857
|
|
$
107,657
|
Flotek Industries,
Inc.
|
Unaudited
Reconciliation of Non-GAAP Items and Non-Cash Items Impacting
Earnings
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Loss from
Continuing Operations and Reconciliation to Adjusted EBITDA
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
30/09/2020
|
|
30/09/2019
|
|
30/06/2020
|
|
30/09/2020
|
|
30/09/2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
Continuing Operations (GAAP)
|
|
|
$
(45,241)
|
|
$
(11,160)
|
|
$
(9,561)
|
|
$(118,771)
|
|
$
(39,177)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense
|
|
|
19
|
|
1
|
|
16
|
|
40
|
|
2,014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Income
|
|
|
|
(206)
|
|
(571)
|
|
12
|
|
(463)
|
|
(1,483)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax
Benefit
|
|
|
(81)
|
|
(191)
|
|
(32)
|
|
(6,282)
|
|
(694)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
|
518
|
|
2,058
|
|
468
|
|
3,177
|
|
6,437
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of
Goodwill
|
|
|
11,706
|
|
-
|
|
-
|
|
11,706
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of Fixed
and Long Lived Assets
|
|
12,521
|
|
-
|
|
-
|
|
69,975
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
(Non-GAAP)
|
|
|
|
$
(20,764)
|
|
$
(9,863)
|
|
$
(9,097)
|
|
$
(40,618)
|
|
$
(32,903)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Compensation
Expense
|
|
|
690
|
|
1,160
|
|
1,059
|
|
2,211
|
|
2,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance and
Retirement
|
|
|
749
|
|
658
|
|
1,227
|
|
3,514
|
|
2,735
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory
Write-Down
|
|
|
9,565
|
|
-
|
|
-
|
|
11,033
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
M&A Transaction
Costs
|
|
|
3,219
|
|
-
|
|
498
|
|
3,717
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory
Step-Up
|
|
|
81
|
|
-
|
|
155
|
|
236
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholder-Related
Activities
|
|
|
-
|
|
4
|
|
-
|
|
-
|
|
656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss on
Disposal of Assets
|
|
|
(37)
|
|
3
|
|
(22)
|
|
(91)
|
|
1,096
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on Lease
Termination
|
|
|
-
|
|
-
|
|
(576)
|
|
(577)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supply Chain Contract
Commitment
|
|
-
|
|
-
|
|
-
|
|
825
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(Non-GAAP)
|
|
|
|
$
(6,497)
|
|
$
(8,038)
|
|
$
(6,756)
|
|
$
(19,750)
|
|
$
(25,587)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Management
believes that adjusted EBITDA for the three and nine months ended
September 30, 2020 and September 30, 2019, and the three months
ended June 31, 2020, is useful to investors to assess and
understand operating performance, especially when comparing those
results with previous and subsequent periods. Management views the
expenses noted above to be outside of the Company's normal
operating results. Management analyzes operating results without
the impact of the above items as an indicator of performance, to
identify underlying trends in the business and cash flow from
continuing operations, and to establish operational goals.
(2) Results of the Company's Consumer and Industrial Chemistry
Technologies ("CICT") segment are presented as discontinued
operations for all periods.
(3) Prior periods presented for 2019 have been adjusted to reflect
revisions to results determined not to be material to those prior
periods.
|
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SOURCE Flotek Industries, Inc.